Gold continues to slump after God of Wealth Day
Gold continues to slump after God of Wealth Day
Local gold prices continued falling sharply today, February 4, after local people rushed to buy gold on God of Wealth Day on Monday in anticipation of good luck and prosperity throughout the year.
According to Thanh Nien news website, Saigon Jewelry Company (SJC) cut its gold selling price by VND300,000 to VND44.2 million per tael while keeping the buying price unchanged at VND43.8 million. The leading gold firm also slashed gold ring prices by some VND800,000 compared with its Monday peak, at VND43.8 million and VND44.5 million per tael for buying and selling. A tael equals to 1.2 troy ounces.
Doji Group also lowered SJC gold prices by VND200,000 per tael, buying the yellow metal at VND43.6-43.78 million per tael and selling it at VND44.6-44.82 million per tael. Meanwhile, gold stores run by Phu Nhuan Jewelry Company (PNJ) quoted gold at VND43.75 million for buying and VND44.3 million for selling, down VND500,000 against the previous day.
The steep price drop prompted local gold firms to stay cautious over market volatility. Therefore, they tried to balance demand and supply by keeping a wide gap between the buying and selling prices, at VND400,000 to VND1 million per tael.
On the world market, gold rose by US$1.3 against the previous session at US$1,578.8 per ounce. One tael is equivalent to 1.2 troy ounces.
On Monday, gold experienced strong turbulence, tumbling US$8 to US$1,570 before bouncing back to more than US$1,578 per ounce. However, it still failed to reach the US$1,600 mark.
According to market watchers, gold has yet to make a sharp jump while the greenback is rising against other currencies, with the USD Index adding 0.3 points at 97.8 today. The coronavirus outbreak caused two-thirds of Chinese factories to cease operations and cut flights by half, resulting in a gloomy outlook for the Chinese and global economies.
